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Staples has deployed a new mobile tool to make back-to-school shopping easier (SPLS)

Back to School
Back to School

BII

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Staples has rolled out a beta test of an in-app tool to make purchasing school supplies easier for back-to-school shoppers.

The tool lets customers upload a photo of their back-to-school shopping list via the Staples Easy System tab on the mobile app, which uses artificial intelligence (AI) and crowdsourced data to send shoppers a list of top choices within 24-48 hours. The customers can then purchase the items online. Staples' newest tool looks to boost the company's online presence and maintain its place as a top resource for school supplies, especially as sales decline and other online merchants pose bigger threats to the company.

Staples' is likely hoping its newest mobile initiative will provide a boost during one of its most popular shopping seasons. The chain experienced a nearly 6% year-over-year (YoY) decline in total sales during Q2 2016, to just over $1.9 billion. However, Staples' online sales grew 1% YoY during Q2, highlighting the need for the company to focus on digital to bring total growth back up. Interim CEO Shira Goodman noted on the earnings call that over half of Staples' sales come from online, through both its B2C and B2B websites. Since online is currently the highest-performing part of Staples' overall business, it makes sense that the retailer would focus on its mobile app to attract back-to-school shoppers. That said, the tool is rolling out in beta just a few weeks before school starts, so engagement rates may be a bit lackluster.

The chain also faces heavy competition, most notably from Amazon. During the 2015 back-to-school shopping season, Amazon offered the lowest prices when compared to other key players like Walmart and Target, according to a report from Profitero. To make its marketplace even more attractive, Amazon also offered free standard shipping on all items in its back-to-school categories last year. Furthermore, Amazon boasts 34 million more monthly active users on its mobile app than Staples, according to Survey Monkey Intelligence. This stands to threaten Staples' performance during the back-to-school season considerably.

But the new in-app feature may gain traction among Staples' most loyal shoppers. Over half of US parents plan to use a smartphone when shopping for back-to-school this year, according to a report from FatWallet. Staples' new tool meets these shoppers on their mobile devices, where they are already turning for guidance. The company should look to target its most loyal app users with this new feature to ensure that they turn to Staples' for their back-to-school needs. For example, Staples' could offer app users exclusive discounts and promotions via the mobile app to increase conversion rates. Despite the company's mild online success, Staples' will have to keep honing in on digital tools in order to better compete during this high-volume time.

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